ALIBABA has unveiled a new server chip that’s based on advanced 5-nanometer technology, marking a milestone in China’s pursuit of semiconductor self-sufficiency.

Developed by Alibaba’s in-house semiconductor unit T-Head, the chip — the Yitian 710 — is based on micro-architecture provided by U.K.-based Arm Ltd. and will not be available for commercial use outside of Alibaba, according to a statement yesterday.

With the pandemic fueling increasing demand for cloud services, tech giants worldwide are increasingly seeking ever-more powerful and energy efficient semiconductors to gain an edge.

Alibaba’s server chip is one of the most advanced by a Chinese firm yet, as it joins global rivals like Amazon.com Inc. and Google in gradually replacing silicon from traditional chipmakers like Intel Corp. and Advanced Micro Devices Inc. with products custom-designed for their data centers and workloads.

Alibaba is the largest cloud computing provider in China by market share and the third-largest globally, according to research firm Gartner.

But with limited domestic semiconductor manufacturing capabilities, Alibaba will likely still have to outsource production. While the company didn’t disclose its manufacturing partner, Taiwan Semiconductor Manufacturing Co. and South Korea’s Samsung Electronics Co. are the only two companies capable of mass-producing 5-nanometer chips. (SD-Agencies)